Industrial Democracy in the Chinese Aerospace Industry: The Innovation Catalyst

115 Pages·2017·5.66 MB·English

by  Denise Tsang (auth.)

Industrial Democracy in the Chinese
Aerospace Industry
DeniseTsang
Industrial
Democracy
in the Chinese
Aerospace Industry
The Innovation Catalyst
DeniseTsang
HenleyBusinessSchool
UniversityofReading
Henley-on-Thames,UnitedKingdom
ISBN978-1-137-58022-1 ISBN978-1-137-58023-8(eBook)
DOI10.1057/978-1-137-58023-8
LibraryofCongressControlNumber:2016957403
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P
REFACE
IhadtheprivilegeinthepastyearstomeetthreescholarsintheUKsent
by the Chinese Scholarship Council, who kindly shared their knowledge
withmeinrelationtoinnovativefirmsinthefast-changingstatesectorin
China. Chinese state-owned enterprises have been associated with eco-
nomicinefficienciesandwereperceivedasfinancialburdens.Yet,Chinese
state aerospace firms have not only consistently launched new products
buthave also managedto re-inventthemselves andalter theirownership,
governance and strategic dynamics. The business system that the aero-
space conglomerates AVIC, CASC, CASIC and COMAC have pursued
derived from the country’s unique politico-economic and socio-cultural
contexts being deeply entwined with its long history. The origin of the
aerospaceindustrycouldbetracedtothefirstgenerationofUS-,UK-and
Russian-trained Chinese scientists during the post-Second World period;
these scientists gained experience within two diametrically opposed
regimes: the Marxist Leninism of the USSR and the liberal democracy of
Anglo-America. Nevertheless, China’s diplomatic relationship deterio-
rated with both regimes and the technological diffusion came to a halt
duringthe1960sandthe1970s.Despiteitslimitedeconomicinfrastruc-
ture, China continued its endeavour in aerospace innovation under
talentedscientificminds suchasQianXuesen.Against allodds,consider-
ableprogresswasmadeindefenceandspace,andthenaviation.Thisbook
focuses on the much neglected industrial democracy that underlies pro-
duct innovation. The notion of industrial democracy has paradoxically
remained intact over the decades even though it has been one of the
drivers for aerospace innovation. This book will examine work autonomy
v
vi PREFACE
thathasemergedsincetheindustry’sconceptionaswellastheflourishing
managerial-ledemployeeinvolvementsincetheeconomicreform.Chinese
aerospace conglomerates have been and are immersed in family-based
culture, and sustainable growth is considered to be more important than
the elusive struggle for a democratic ideal rooted in Western philosophy.
The Confucian notions of responsibility and obligation, which are ingre-
dients to align individual, corporate andnational interests, have conjured
up anindustrial democracywithChinese characteristics.
A
CKNOWLEDGEMENTS
I am grateful for anonymous individuals within the global aerospace
community who have generously provided their time to furnish me with
information that has enabled me to write this book. Without their help,
I would not be able to write about this fascinating and fast-changing
industrial sector. The conceptualization of this book has also benefited
from the seminar in the Department of International Business and
Strategy, Henley Business School. I would like to thank the participants
oftheseminar,includingSophieandSuzanne.Finally,Iwouldalsoliketo
extend mythanks to Mr Anthony Wrightfrom the Museum of Berkshire
Aviation who has discussed commercial aviation with me and read some
partsofthebook.Finally,theviewsexpressedinthisbookarethoseofthe
authoranddoes notreflect thatofthe University of Reading.
vii
C
ONTENTS
1 A Catalystfor ChineseAerospaceInnovation 1
Introduction 1
Industrial Democracyin China 6
The ChineseAerospace Industry 9
Democratic Managementin AerospaceSOEs 12
Aspects ofIndustrial DemocracyasInnovation Catalyst 15
Research Methodology 16
Conclusion 17
Notes 17
Bibliography 18
2 The Entrepreneurial StateinInnovation 23
Introduction 23
The EntrepreneurialState: Crisisand Opportunity 24
Conclusion 31
Notes 32
Bibliography 33
3 Work Autonomyand ProductInnovation 35
Introduction 35
The Significanceof WorkAutonomy 37
Individual Autonomyand Innovation 40
ix
x CONTENTS
Team Autonomyand Innovation 42
Corporate Autonomyand the ManagementofInnovation 44
Conclusion 46
Appendix 3.1:Examples ofProduct Innovation– Rockets 48
Appendix 3.2:Extract fromtranscriptofonline Interview 49
Notes 47
Bibliography 51
4 Employee Involvementin the Ageof Marketization 57
Introduction 57
Quality Circles 59
Employees RatingofSuperior Performance 62
EmployeeShare Ownership 66
Conclusion 68
Notes 70
Bibliography 71
5 Obsolency or Revival ofOld StyleIndustrialDemocracy 75
Introduction 75
Realism and theStaff and Workers’ RepresentativeCongress 76
The Social SideofACFTU 78
Chinese AerospaceCulture 80
Conclusion 84
Notes 84
Bibliography 85
6 Whatever Happened toIndustrialDemocracy 89
Introduction 89
Globalization of IndustrialDemocracy 90
Conclusion 97
Notes 98
Bibliography 98
Author Index 101
SubjectIndex 105
L F
IST OF IGURES
Fig.1.1 Dimensionsofindustrialdemocracy 2
Fig.1.2 Industrialdemocracyandcountryvariation 7
Fig.1.3 Fromknowledgetoaerospacemarket 10
Fig.1.4 TechnologicalaccumulationintheChineseaerospace
industry 11
Fig.1.5 RelationshipbetweenCASCanditssubsidiary 16
Fig.3.1 OrganizationalchartofFirmA 38
Fig.4.1 Deming’sPDCAinChina 61
Fig.5.1 TheAFCTUasadivisionoftheCCP 79
Fig.6.1 NatureofInnovation 90
Fig.6.2 ChineseAerospaceCultureandAVIC 97
xi